CAMBRIDGE INTERNATIONAL EXAMINATIONS

Cambridge International General Certificate of Secondary Education

MARK SCHEME for the May/June 2015 series

0452 ACCOUNTING
0452/23

Paper 2, maximum raw mark 120

This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of
the examination. It shows the basis on which Examiners were instructed to award marks. It does not
indicate the details of the discussions that took place at an Examiners meeting before marking began,
which would have considered the acceptability of alternative answers.
Mark schemes should be read in conjunction with the question paper and the Principal Examiner
Report for Teachers.
Cambridge will not enter into discussions about these mark schemes.
Cambridge is publishing the mark schemes for the May/June 2015 series for most
Cambridge IGCSE, Cambridge International A and AS Level components and some
Cambridge O Level components.

IGCSE is the registered trademark of Cambridge International Examinations.

Page 2
1

Mark Scheme
Cambridge IGCSE May/June 2015

Syllabus
0452

Paper
23

(a) Control/limit/keep track of petty cash expenditure

The cash remaining and the vouchers received should equal the imprest
Can help to reduce fraud
Or other suitable advantage
Any one advantage (1)

[1]

(b) See petty cash book on next page

[11]

(c) (i) $78 (1 o.f.)

(ii) Bank (or Cash) (1)

[2]

(d) Stationery (1)

(e)

[1]
Kuda Maposa
Journal
Debit
$

Drawings
Purchases
Goods taken for personal use
Motor vehicles
Capital
Motor vehicle purchased using private funds
Machinery
Machinery repairs
Valley Machines
Invoice received for purchase of new machine and
repairs to existing machine

Credit
$

300
300

(1)
(1)
(1)

12 000

(1)
(1)
(1)

12 000

865
125
990

}(1)
}
(1)
(1)
[9]

[Total: 24]

Cambridge International Examinations 2015

Page 3

Mark Scheme
Cambridge IGCSE May/June 2015

(b)

Syllabus
0452

Paper
23

Kuda Maposa Petty Cash Book

Total
Received

Date

Details

$
100
10 (1)

2015
Mar 1
6
11
14
18
21
26
29

Balance b/d
Postage
Tea and coffee
Stationery
T Masuka
Refund for stationery
Window cleaner
P Zhonga

30 Balance c/d
110
22 (1
o.f.)

Total
Paid

Postage

Stationery

General
Expenses

Ledger
accounts

13
5
27
15

13 (1)
5 (1)
27 (1)
15 (1)

12
16
88
22

12 (1)
16 (1)
13

27

17

31

110
April 1

Balance b/d

(1) Dates
(1 o.f.) Totalling analysis columns
(1 o.f.) Matching totals on total columns

[11]

Cambridge International Examinations 2015

Page 4
2

Mark Scheme
Cambridge IGCSE May/June 2015

Syllabus
0452

Paper
23

(a) (i) 15% (1)

(ii) $187 (1)
(iii) $217 (1)

[3]

(b) Jai Kapur (1)

[1]

(c) Goods returned

Overcharge
Allowance for faulty/damaged goods
Any one reason (1)

[1]

(d) Debit note (1)

[1]

(e)
Books of Jai Kapur

Books of Vijay Singh

Account debited

Account credited

Account debited

Account credited

Sales returns (1)

Vijay Singh (1)

Jai Kapur (1)

Purchases returns (1)

[4]

(f)
2015
April 1 Balance b/d
30 Sales
Bank (dis. chq.)
Interest
Balance c/d
2015
May 1 Balance b/d

Vijay Singh
Sales ledger control account
$
$
2015
475 (1)
April 30 Sales returns
46 (1)
590 (1)
Bank
387 (1)
26 (1)
Discount allowed
13 (1)
8 (1)
Bad debt
32 (1)
21
Contra
150 (1)
Balance c/d
492
1120
1120
2015
492 (1 o.f.)
May 1 Balance b/d
21 (1)

+ (1) dates
Three column running balance presentation acceptable

[12]

(g) This is when the balance of an account in the purchases ledger is set against the balance of
an account of the same person in the sales ledger. (1) It is used when a trader both buys
goods from and sells goods to another business. (1)
[2]
(h) The customer had not paid the balance owed by the end of the period of credit allowed. (1)
[1]

Cambridge International Examinations 2015

Page 5

Mark Scheme
Cambridge IGCSE May/June 2015

Syllabus
0452

Paper
23

(i) To assist in the location of errors

To provide an instant total of trade receivables
To prove the arithmetical accuracy of the sales ledger
To enable a statement of financial position to be prepared quickly
To provide a summary of transactions relating to trade receivables
To help reduce fraud
Any one reason (1)

[1]

(j) An error in the sales ledger would not be revealed (1)

Any fraud would not be revealed (1)
Or other relevant point
Any two points (1) each

[2]
[Total: 28]

(a)

Malala Khan
Statement of Affairs at 31 May 2015
Assets

Cost
$
28 600
24 000
52 600

Machinery
Motor vehicles
Inventory
Trade receivables
Less Provision for doubtful debts
Other receivables

Depreciation
to date
$
11 440 (1)
13 875 (1)
25 315

Book
value
$
17 160 (1 o.f.)
10 125 (1 o.f.)
27 285

6 750 (1)
7 800 (1)
156

7 644 (1)
101 (1)

Liabilities
Long-term loan

14 495
41 780
10 000 (1)

8 100 (1)
4 080 (1)

Trade payables
Bank overdraft

12 180
22 180

19 600 (1 o.f.)
41 780

Capital
Any suitable format acceptable

Cambridge International Examinations 2015

[12]

Page 6

Mark Scheme
Cambridge IGCSE May/June 2015

(b)

Syllabus
0452

Paper
23

Malala Khan
Capital account
$
2015
May 31 Drawings
Drawings
Loss for year
Balance c/d

1 990
420
2 990
19 600
25 000

$
(1)
(1)
(1 o.f.)
(1 o.f.)

2014
June 1 Balance
2015
Jan 1 Bank

20 000 (1)
5 000 (1)
25 000

2015
June 1 Balance b/d

19 600

Three column running balance presentation acceptable

[6]

(c)
Increase

Decrease

(1)

Reduce the credit period allowed to credit customers

Sell a motor vehicle which is no longer used

No effect

(1)

(1)

Arrange with the bank to have a loan for six months

Allow cash discount to credit customers who pay
promptly

(1)
[4]

(d) To be able to meet debts when they fall due

To be able to take advantage of cash discounts
To be able to take advantage of business opportunities as they arise
To ensure that there is no difficulty in obtaining further supplies
Or other suitable explanation
Any three points (1) each

[3]
[Total: 25]

Cambridge International Examinations 2015

Page 7
4

(a)

Mark Scheme
Cambridge IGCSE May/June 2015

Syllabus
0452

Syed Zilani
Income Statement for the year ended 31 January 2015
$
$
Revenue
Cost of sales
Purchases
Less Goods for own use
Less Closing inventory
Gross profit
Discount received

62 030 (1)
580

Wages
Insurance (2 800 (1) 400 (1))
Advertising
Bad debts
Provision for doubtful debts (2% 6 500)
Rates (2 160 (1) 720 (1))
General expenses
Depreciation Equipment (20% 9 300)
Profit for the year

61 450 (1)
4 100 (1)

10 140
2 400
1 120
90
130
1 440
151
1 860

Paper
23

$
77 100

57 350
19 750 (1 o.f.)
43 (1)
19 793

(1)
(1)
(1)

(1)

17 331
2 462 (1 o.f.)

Horizontal format acceptable

[14]

(b) Either
Profit should not be overstated
Or
Profit should not be anticipated, but possible losses should be provided for (1)
Example
Either Creation of provision for doubtful debts
Or Providing for depreciation of equipment (1)

[2]

(c) Comparability
Relevance
Understandability
Any one objective (1)

[1]

(d) Should compare with a business in the same trade

Should compare with a business of approximately the same size/same capital
Should compare with a business of the same type (sole trader)
The financial statements may be for one year which will not show trends
The financial statements may be for one year which is not a typical year
The financial year may end on different dates (when inventories are high/low)
The businesses may operate different accounting policies
The statements do not show non-monetary factors
It may not be possible to obtain all the information needed to make comparisons
Or other suitable points
Any two points (1) for basic statement and (1) for development

[4]
[Total: 21]

Cambridge International Examinations 2015

Page 8
5

Mark Scheme
Cambridge IGCSE May/June 2015

Syllabus
0452

Paper
23

(a)
Error

Increase Decrease
$
$

Sales returns, $420, had not been recorded

420 (2)

Inventory on 1 March 2014 was overstated by $1500

1500 (2)

The income statement included rent and rates, $6150, for 15 months
to 31 May 2015

1230 (2)

Discount allowed, $180, had been recorded as discount received

(1) for position and (1) for figure in each case
(b) (7350 + 1120) : ((6870 + 5000)
8470 : 11 870 (1)
0.71 : 1 (1)

360 (2)
[8]

[2]

(c) Liquid assets are less than the current liabilities

Cannot meet the immediate liabilities from the immediate assets
Is dependent on selling inventory to meet the current liabilities
Is below the generally accepted benchmark/is inadequate/unsatisfactory
Or other suitable comment based on the answer to (b)
Any two points (1) each
(d) Excludes the inventory from the calculation

[2]
[1]

(e)

Trade receivables 365

Credit sales
1

[1]

(f)

7 350 365 (1)

= 38 days (1)
71 500
1

[2]

(g) On average credit customers are taking 8 days more than is allowed
This may affect the ability of the business to pay current liabilities
This may affect the ability of the business to take advantage of opportunities when they arise
Or other suitable comments based on answer to (f)
Any two points (1) each

Cambridge International Examinations 2015

[2]

Page 9

Mark Scheme
Cambridge IGCSE May/June 2015

Syllabus
0452

Paper
23

(h) Offer cash discount for prompt payment

Charge interest on overdue accounts
Improve credit control/send invoices or statements promptly
Refuse further supplies until outstanding balance paid
Invoice discounting and debt factoring
Any two points (1) each

[2]

(i) On average suppliers are paid 4 days earlier than is required

This may enable him to take advantage of cash discounts
This will improve relations with credit suppliers
Deprives the business of the use of the money earlier than necessary
Any two points (1) each

[2]
[Total: 22]

Cambridge International Examinations 2015